0
How can an increase in nominal income and a decrease in real income occur simultaneously?
Wiki User
∙ 15y ago
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
If a is an inferior good and consumer income risesthe demand for a will?
Inferior goodA good for which an INCREASE(decrease) in consumer income will lead to a DECREASE(increase) in demand for that good.Normal GoodA good for which an INCREASE(decrease) in consumer income will lead to a INCREASE(decrease) in demand for that good.
Are consumption and income positively related or are they negatively related?
They are positively, or directly related. An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.
What is the effect of an increase in consumer income on demand for a good?
They both will increase (or decrease).
How will inflation affect the future?
Your cost of living will increase, your real income will decrease.
What terms is defined as increase or decrease in purchasing power brought on by changing in price?
income effect
If a is an inferior good and consumer income risesthe demand for a will?
Inferior goodA good for which an INCREASE(decrease) in consumer income will lead to a DECREASE(increase) in demand for that good.Normal GoodA good for which an INCREASE(decrease) in consumer income will lead to a INCREASE(decrease) in demand for that good.
Are consumption and income positively related or are they negatively related?
They are positively, or directly related. An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.
What is the effect of an increase in consumer income on demand for a good?
They both will increase (or decrease).
Do income taxes increase or decrease your gross pay?
Decrease. The tax is taken OUT of the gross leaving a net.
How will inflation affect the future?
Your cost of living will increase, your real income will decrease.
What is the effect on income when service is rendered on credit?
Income from services rendered account will decrease and debtors account will increase
What terms is defined as increase or decrease in purchasing power brought on by changing in price?
income effect
Will a net income of 95000 increase or decrease retained earnings?
Since increases in retained earnings mostly come from income accumulation, a net income of $95,000 will increase retained earnings.
Which-political party benefits more with income increase?
which political party tends to benifit when incomes increase or decrease
An increase in aggregate demand is most likely to be caused by a decrease in?
The tax rates on household income.
What increases and what decrease capital or owners equity?
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
If a good is a normal good what will happen to its consumption as income increases?
The definition of a Normal Good is: a good that will increase in consumption as income increases and decrease in consumption as income decreases.
